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THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT

POLICY

Date:

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Report Highlights:

Senegal has announced a record production of 1.067 million tons of peanut for MY 2015/16, a 59

percent increase from the previous year output, and a 40 percent increase above the average of the past

five years production. In November 2015, The National Inter-Professional Peanut Committee of Senegal (CNIA) announced the MY 2015/16 minimum in-shell peanut price at 200 F CFA ($0.33 per kg). Only 40,000 tons of peanuts were collected by the four peanut processing companies, while

340,000 tons were exported to China (65 percent) and 33 percent to Vietnam. However, peanut actors

estimate the 2015/06 production between 500,000 tons and 600,000 tons. The shortfall of raw peanut for

processing could reduce the amount of animal feed needed in the country as 25 percent of the in-shell

peanut waste is used for feed.

Fana Sylla, Agricultural Specialist

Jude Akhidenor, Regional Agricultural Attaché

Oilseeds and Products

Agricultural Situation

Oilseeds and Products Annual 2016

Dakar

Senegal

7/19/2016

Public Voluntary

Page 2 of 9

General Information:

The Government of Senegal (GOS) estimates MY2015/16 peanut production at 1.067 million tons, a 58 able to collect 40,000 tons, while 340,000 tons were collected to be exported mainly to China (65 percent) and Vietnam (33 percent) markets. The competition among buyers was quite stiff. Foreigners

were able to offer better prices to farmers than domestic processing companies despite a minimum farm

gate price fixed in November by the National Inter-Professional Peanut Committee of Senegal (CNIA)

at 200 F CFA ($0.33). In June 2016, post visited the region of Kaolack to meet with peanut actors and

peanut processing companies, who estimated the MY 2015/16 peanut production between 500,000 tons and 600,000 tons.

Production

For the MY 2015/16 peanut season, subsidized peanut seeds were distributed on time but fertilizers were delayed. The rainy season was favorable. Rains arrived on time and lasted until November. However, farmers noted a decrease in production due to unexpected heavy rains, late delivery of fertilizers, and low seeds quality. Nevertheless, the Government of Senegal (GOS) estimated a 21 percent yield increase (0.9 tons per hectare) and 29 percent increase in area planted (1.135 million hectares) compared to the previous year. GOS estimates peanut production for MY2015/16 at 1.067 million tons, a 58 percent increase compared

350,000 tons for local consumption

50,000 t

150,000 tons in post-harvest loss

40,000 tons collected by the four peanut oil processing companies (COPEOL, SUNEOR, WAO,

and CAIT)

340,000 tons for exports

125,000 tons for subsidized seeds

For MY 2016/17, the Senegalese government forecasts peanut production at 1.140 million tons, and allocated over 100 billion CFA ($53 million) to support the forthcoming campaign. Projects to be funded include:

75,000 tons of certified and improved planting seeds (14 billion CFA)

94, 000 tons of fertilizer (14 billion CFA)

20,000 small equipment units (80 billion CFA)

Page 3 of 9

In May 2016, the magazine Jeune Afrique announced that Senegal received $20 million from the International Development Association (IDA) from the World Bank that aims to help the poorest countries produce certified seeds production and sell peanut. More than 850,000 peanut producers, including 40 percent of women, will benefit from the program. In Senegal, the program will be implemented by the West Africa Agricultural Productivity Program (PPAAO).

Marketing

In November 2015, the National Inter-Professional Peanut Committee of Senegal (CNIA) announced the in- marketing campaign started in November 16, 2015. More than 2,000 collection points were established for all peanut produced in three regions (Diourbel, Kaolack, and Ziguinchor). The Government and the CNIA approved 600 operators to buy peanut from the collecting points and sell them to oil processing companies (SUNEOR, COPEOL, CAIT, and WAO). The campaign ended in May and operators were only able to collect 40,000 tons of peanuts for the oil processing companies. Most of the peanut were sold in the export market which offered better prices (315 F CFA ($0.53) per Kg). In 2009, the GOS opened the peanut export market due to surplus production of one million tons. The Chinese government expressed its willingness to buy Senegalese peanut on the condition they meet all its sanitary and phytosanitary requirements. It took three years (2011-2014) for both governments toquotesdbs_dbs3.pdfusesText_6